So-Young International (SY) Q2 2024 earnings summary

Executive summary

• Achieved total revenue of RMB 407.4 million in Q2 2024, exceeding guidance despite a 1.1% year-over-year decline, driven by strong growth in medical product sales and maintenance services.

• Non-GAAP net profit reached RMB 22.2 million, up 43.1% year over year, reflecting high-quality growth and effective industry integration.

• Net income attributable was RMB 18.9 million, compared to a net loss of RMB 2.6 million a year ago.

• Strategic expansion included opening 14 new clinics in key cities, with Beijing clinic leading in repeat customer rates and acquisition costs.

• Expanded business across upstream, midstream, and downstream segments, leveraging vertical integration to enhance transparency and operational efficiency.

Financial highlights

• Sales of medical products and maintenance services rose 22.6% year over year to RMB 106 million.

• Information services and other revenues were RMB 279.2 million, down 6.6% year over year due to fewer medical service providers subscribing.

• Reservation services revenue fell 16.9% year over year to RMB 22.4 million, mainly due to policy changes.

• Total operating expenses dropped 13% year over year to RMB 245.6 million, with notable reductions in G&A and R&D expenses.

• Maintained a robust cash position of RMB 1.25 billion as of June 30, 2024.

Outlook and guidance

• Q3 2024 revenue expected between RMB 350 million and RMB 370 million, reflecting macroeconomic softness and early-stage clinic expansion, a 9.2% to 4.0% year-over-year decrease.

• Long-term growth anticipated as strategic integration of the value chain matures and clinics stabilize.

• Guidance reflects current market and operating conditions and is subject to change.